Oil Prices Plummet as Trump Hints at Iran Deal
US and Iran may be on the cusp of negotiations to resolve their differences in the Strait of Hormuz, according to statements made by Trump. This development has led to a sharp drop in oil prices, with WTI crude oil falling nearly 5% to approximately $80.5/barrel. The progress of these negotiations will remain a key variable for short-term oil prices.
The Federal Reserve is also making waves as Chairman Waller considers reducing the number of FOMC meetings from eight times a year, potentially compressing policy transparency and market guidance. According to CME's 'FedWatch', the cumulative probability of a 25 basis point rate hike has risen to 73.6% for September.
The US Treasury Secretary Yellen confirmed that she coordinated with Japan to intervene in the yen to address its disorderly fluctuations, emphasizing economic security as national security. South Korea plans to inject about $14 billion into its sovereign wealth fund to invest in AI and other fields.